XRP hits three-year high

19th November 2024

XRP surged to a high of AU$1.9376 last week, achieving a gain of over 116% before closing with an impressive 81.93% increase.

This rally, which occurred over the weekend, marked the strongest performance for XRP in three years, driven by optimism around Ripple’s legal battle with the U.S. SEC and the potential for a more favourable regulatory environment.

Source: XRP weekly chart

Despite price cooling off on Sunday, the token has maintained its price above the AU$1.70 level, sparking excitement for its prospects.

Key drivers behind the price decline

• Whale profit-taking: Significant XRP inflows to exchanges have been observed, including a major 10 million XRP transfer to a crypto exchange, suggesting large holders are locking in profits.
• Increased selling pressure: The balance of XRP on exchanges rose by 3% between November 6 and 16, signalling increased selling during the price surge.
• Retail selling: Smaller investors holding under 1 million XRP sold off 75.7 million tokens, worth nearly US$88 million, while larger holders accumulated 453.3 million XRP, indicating potential support at these levels.

Market dynamics

• Liquidations surge: On November 17, the derivatives market saw over US$12.6 million in liquidations, primarily from long positions, amplifying the pullback.
• Overbought conditions: XRP's Relative Strength Index (RSI) is showing overbought signals across multiple timeframes, suggesting that some price consolidation may be needed.

Market outlook

Despite the recent pullback, analysts remain generally optimistic. Some traders believe that XRP is still in the early stages of its market cycle, with potential price targets as high as US$20. Others view the current correction as a healthy retest of key support levels, with XRP potentially consolidating between US$0.65-$0.75 before another rally.

While the market remains divided on whether the top has already been reached, broader market sentiment and regulatory developments, especially regarding the SEC’s stance on XRP, will likely play a crucial role in determining the next phase of the asset's price movement.

What is XRP?

XRP is a digital asset native to the XRP Ledger, a decentralised, open source blockchain built for fast and efficient payments. Launched in 2012, XRP is designed to settle transactions in just 3-5 seconds, making it one of the fastest digital assets in the market.

XRP Liquidity Provider

BTC Markets was the first crypto exchange in Australia to list XRP in 2017, and for many of our clients, it was the initial crypto asset they purchased on our platform. In 2020, we took on the role of Australia’s On Demand Liquidity (ODL) partner, collaborating closely with Ripple to drive further innovation in the payments space.

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